Suppose that you opened a margin account $($margin requirement $=60\%)$ with your brokerage firm.

Through this account, you invested in $100$ shares of Mercer Inc. stocks at $$80$ per share a year ago. While

you hold the stocks $(1$ year$),$ the firm paid out $$0\mathrm{.}50$ dividend per share every quarter. If you sell the

stocks at $$90$ per share today, what is the percentage return for your investment? Assume zero

commission, and you need to pay $2\%$ interest on the borrowed fund. $(1$ point$)$

$2.$ An investor sells $100$ shares short at $$52.$ The sale requires a margin deposit equal to $55$ percent of

the proceeds of the short sale. The company paid a cash dividend of $$1$ per share after the investor sold

the shares on short. If the investor covered the position at $$46($after the cash dividend was paid out$),$

what was the percentage earned or lost on the investment? $(1$ point$)$

$3.$ Worker A annually invests $$1,000$ in an IRA pension account for ten years $($ages $26$ through $35)$ and

never makes another contribution. Worker B annually invests $$1,200$ in an IRA account for thirty years

$($ages $36$ through $65).$ Which worker will have more in his or her account when he or she retires $($at the

age of $65)$ if they both earn $8$ percent on their investments? Provide detailed calculation. $(1$ point$)$